Chapter 3 - Mandatory Disclosures Flashcards
The 3 step disclosure process of disclosing agency can be remembered by
DEC
Disclose, Elect, Confirm
When should an agent disclose agency?
The department of real estate mandates “as soon as possible”
The disclosure statement should be delivered as soon as practical and before the execution of offer to purchase. If statement is not delivered before execution or is later amended, buyer has the right to…
Cancel the offer within 3 days after delivery (5 if mailed)
A material fact is…
is any fact that, if disclosed, could affect the decision of an entity in completing the transaction.
A mandated disclosure is…
an item of information required by law to be conveyed from one entity involved in a real estate transaction to another entity in the same transaction.
What was the result of Easton vs Stassburger (1984)
A law that requires all real estate agents to conduct a competent and diligent visual inspection of all accessible property areas in a real estate sale involving 1-4-unit residential properties and disclose to the prospective buyer all material facts affecting the value or desirability of the property.
What are the exceptions to the Easton vs Strassburger law?
There are no exceptions to or exemptions from this law. If an agent does not comply with this code section, the statute of limitations for bringing suit is two years.
What are two types of termite reports?
Section 1 is for what is commonly referred to as active infestation. The industry standard is that the seller would pay for this termite damage.
Section 2 is for what is generally a condition that could lead to a future problem. Examples of conditions noted in section 2 would be plumbing leaks or excessive moisture conditions.
What is Stigmatized Property?
Property that may be perceived to be undesirable for other than physical or environmental reasons. Besides murder or suicide, a house could be stigmatized by the fact that molestations occurred, being haunted, unlucky etc.
The federal Real Estate Settlement Procedures Act (RESPA) applies to
federally-related loans for 1-4-unit residential properties.
What is Megans Law?
Megan’s Law provides for registration of sex offenders and public availability of knowledge regarding the location of these offenders. Now, every sales contract or lease of 1-4-unit residential properties must include a notice informing buyers or lessees of the public availability of this information on the database
when an agent represents only a buyer or a seller, it is considered a
Single Agency
when an agent represents both buyer and seller, it is known as a
Dual Agency
What should agents look for to provide on the Agent Inspection disclosure?
Structural Failure Material Deterioration Water Problems Toxic Mold Insect Infestation \+ Other common problems to detect
